FINANCE

Luxembourg plays a sophisticated key role in the world financial system. Today the Luxembourg financial centre is the largest investment fund centre in Europe – and second in the world after the United States - the leading private banking centre in the Eurozone and the largest captive reinsurance centre in Europe. The financial sector is the largest contributor to the Luxembourg economy.

The success of the financial centre is founded on the social and political stability and on a modern legal and regulatory framework that is continuously updated, inspired by regular consultation between the government, the legislator and the private sector. Thus, over the years, specific regulatory frameworks have been created for alternative investment funds, venture capital investment funds, international pension funds, specialised investment funds, captive reinsurance companies, covered bond issuing banks, securitisation vehicles and family wealth management companies.